Ballard Power Systems Inc. · TSX:BLDP
Ballard Power Systems — Shareholder Meeting (June 2016)
23 slides from Ballard Power Systems's shareholder meeting presentation, Jun 1, 2016
Slide 1: 2016 Annual General Meeting Business Update
Page 1 2016 Annual General Meeting Randy MacEwen, Business Update President & CEO Commercial Confidential
Slide 2: Forward Looking Statements
Page 2 Forward Looking Statements This presentation contains forward‐looking statements, including: estimated revenue; cash operating costs; gross margins; product cost reductions; adjusted EBITDA; liquidity; market size and growth projections; customer value propositions; and expected sales and pro
Slide 3: Agenda
Page 3 Agenda • 2015 Summary • Macro Drivers • Ballard Progress in 2016 • Q&A Commercial Confidential
Slide 4: 2015 Summary
Page 4 2015 Summary • Key Highlights o $80M deal with VW Group o Progress in China ($48M in bus & tram contracts) o Acquired Protonex o Commercial momentum supports 2016 (record $58M order book for 2016) o Strengthened balance sheet • Key Challenge o Telecom Backup Power business Commercial Confiden
Slide 5: Agenda
Page 5 Agenda • 2015 Summary • Macro Drivers • Ballard Progress in 2016 • Q&A Commercial Confidential
Slide 6: Update on Macro Drivers
Page 6 Update on Macro Drivers • COP21 Paris Agreement • China Red Alerts • China 5‐Year Plan • China fuel cell policies • Europe Horizon program Commercial Confidential
Slide 7: COP21 Paris Agreement
Page 7 COP21 Paris Agreement • “2015 United Nations Climate Change Conference” (COP21) held in Paris, Nov/Dec 2015 • COP21 achieved historic consensus to reduce greenhouse gas (GHG) emissions Commercial Confidential
Slide 8: China Red Alerts
Page 8 China Red Alerts • In December 2015: o Beijing and other Chinese cities were put under Red Alert Air pollution in Beijing, China Commercial Confidential
Slide 9: China's Latest 5-Year Plan
Page 9 China’s Latest 5‐Year Plan • 13th 5‐Year Plan was approved in March 2016 • Plan is underpinned by 5 key principles – 1) Innovation – to drive economic development by shifting economic structure into a higher‐quality growth pattern 2) Openness – utilizing both domestic and global markets 3) GR
Slide 10: China Fuel Cell Policies
Page 10 China Fuel Cell Policies • People’s Daily preview of new energy policy – May 20, 2016 o Identified “development of hydrogen energy, fuel cell and such new energy technology” as one of the focus areas in China’s top energy policy • National & regional subsidies available for fuel cell buses b
Slide 11: Europe Horizon Program
Page 11 Europe Horizon Program • Horizon program – 2016 call is for ~140 fuel cell buses o Significant step up from the current total of approximately 60 fuel cell buses deployed in Europe Ballard‐powered bus manufactured by Van Hool NV in Belgium Commercial Confidential
Slide 12: Agenda
Page 12 Agenda • 2015 Summary • Macro Drivers • Ballard Progress in 2016 • Q&A Commercial Confidential
Slide 13: Growth Platforms
Page 13 Growth Platforms POWER PRODUCTS TECHNOLOGY SOLUTIONS • Meet the power needs of • Help customers solve customers through delivery difficult technical and MANDATE of high value, clean energy business challenges in their products that reduce PEM fuel cell programs customer costs and risks • Hea
Slide 14: Heavy Duty Motive
Page 14 Heavy Duty Motive • Ballard‐powered buses have driven 9M kilometers of revenue service in 12 countries • London bus achieved more than 20,000 hours of operation on a single Ballard fuel cell stack CHINA MARKET • The largest bus market globally o Over 300,000 buses sold in China in 2015 versu
Slide 15: Heavy Duty Motive (Cont'd)
Page 15 Heavy Duty Motive (Cont’d) EUROPEAN MARKET • Expect to begin shipping 21 power modules later in 2016 under 3Emotion Program • Also focused on current Horizon Program for >100 fuel cell buses Ballard‐powered bus manufactured by Van Hool NV in Belgium U.S. MARKET • Expect to begin shipping 10
Slide 16: Portable Power (Protonex)
Page 16 Portable Power (Protonex) • 4,500 SPM’s in the field with U.S. military • $5.8M SPM purchase order received for U.S. Army on May 31, 2016 … incremental to $2.8M order in late‐2015 Squad Power Manager – SPM 622 Squad • ‘Milestone C’ with Vest and Squad Power Manager, moving toward ‘Program of
Slide 17: Material Handling
Page 17 Material Handling • >10,000 fuel cell forklift trucks in N/America today, >107M runtime hours Sample of Fuel Cell Forklift Truck Customers • Focusing on two streams: 1) Supply of stacks to after‐market integrators 2) Supply of Technology Solutions and packaged solutions to forklift OEMs • Q1
Slide 18: Telecom Backup Power
Page 18 Telecom Backup Power • Announced definitive agreement for sale of methanol Telecom Backup Power assets on May 17, 2016 o Deal with CHEM, a major power equipment company from Taiwan o Transaction Terms: CHEM to pay up to $6.1M for methanol Telecom Backup Power assets $3M paid on closing p
Slide 19: Technology Solutions Platform
Page 19 Technology Solutions Platform • Mission: help customers solve difficult technical and business challenges in their PEM fuel cell programs through customized technology solutions • >20 programs currently underway • Working with 4 global automotive OEMs, including Volkswagen Group Audi's H‐tro
Slide 20: Investment Highlights
Page 20 Investment Highlights • Industry leadership • Sustainable competitive advantages • Diversified business model • Record order book for 2016 delivery • Embedded optionality Ballard is well‐positioned to capitalize on the large scale potential of commercial fuel cell applications Commercial Con
Slide 21: Agenda
Page 21 Agenda • 2015 Summary • Macro Drivers • Ballard Progress in 2016 • Q&A Commercial Confidential
Slide 22: Q&A
Page 22 Q&A Commercial Confidential
Slide 23: Annual General Meeting June 1, 2016
Page 23 Annual General Meeting June 1, 2016 Commercial Confidential
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